A JOURNEY THROUGH PROVENANCE

WHY BUSINESSCARE? :: We let our results do the talking

Trouble at Mill
One of the main high street banks sought to appoint receivers to a company which had traded as Textile Machine manufacturers from the same Mill premises since the business first commenced in 1860. A well known national firm of accountants had carried out a review for the bank and recommended receivership. The company's auditor offered to introduce a liquidator. The directors turned to us in despair.

On the basis of its report, the bank was anticipating a shortfall on its outstanding advance, with no monies whatsoever available for unsecured creditors. Working with the directors and our own consultant engineer, we were able to persuade the bank to allow the Court to appoint us administrator. A necessary, albeit understandably long overdue trimming of the work-force, coupled with a sale of all surplus plant and machinery, allowed the remaining core business to operate from less than a quarter of the total Mill floor area.

The bank was repaid all its monies within six weeks. Utilising book debt recoveries, we were able to refurbish the remainder of the Mill, which was then let out as individual units. Within less than twelve months, the company enjoyed a higher net income from the rents than it had generated in profits for many years. The bonus was that the slimmed-down manufacturing business was once again restored to profitability.

Exiting the administration order via a voluntary arrangement, the company was able to raise a mortgage on the back of its rental income sufficient to pay 100 pence in the pound to all its creditors.